The casino market in Singapore is perhaps to drop down by 4 percent in 2015. The Morgan Stanley Asia Ltd has anticipated so. Renowned analysts Praveen K Choudhary, Xin Jin Ling & Alex Poon have written that GGR of Singapore has been going to witness a year-on-year decline of 4 percent in 2015. It could be caused severely by collapse in VIP Volumes and flat or negative mass market.
The report which has been released in this regard about the development has revealed that in the first phase of 2015, the VIP volumes in the city-state were downward by 39 percent year-on-year. At that very time, mass revenue has gone down by 3 percent if it is compared to that one year before.
The Morgan Stanley team has disclosed the fact that Singapore is in the due process of putting effort to kick off recoil in the Chinese inbound tourism industry with the Singapore Tourism Board. The Board has also professed that the soundness of the Multiple Journey Visas concerning to the natives from the People’s Republic of China can be expanded up to 10 years or so. Even the team does not consider that possibilities are there to raise the Chinese VIP visitation to the casinos. Even they have furthermore added that gambling volumes should rely upon credit provided by the casinos. However, these aforesaid casinos always stay careful of high level of dire debt stipulations.
The presence of two casinos in Singapore namely Marina Bay Sands or Resorts World Sentosa is prominent. Even it is revealed by the MS Group that Genting Singapore is observant of expanding credit. The stipulation with respect to bad debt stays at a height of 19 percent of VIP revenue in 2015. As a matter of fact, this group does not look forward to Jurong hotel to drive mass market given that large numbers of guests are considerable division of tour groups.
The notable observation of Morgan Stanley is that Genting Singapore’s market share might go 41percent below in the first part of 2015. The brokerage also assumed that visible disadvantages of the VIP segment, the additional cost load of the Universal Studio with Marina Bay Sands comprising site advantage for mass segment or market share could carry on with lower trends.
As a matter of fact, the acknowledgement of the market analysts was that if Genting Singapore were capable of pulling the attentions of more players to, it could astonish investors.
Morgan Stanley has blatantly explained that according to their view Singapore’s gambling market is configured in a better way than that of Macau’s. It is because of dependence on junkets & VIP clients of China. The announcement came on June 30 that Singapore Tourism Board is willing to work with Singapore Changi Airport in investing SGD20 million for two years in promoting more leisure.
